In an unexpected twist for the digital finance world, a little-known ruble-backed stablecoin from Kyrgyzstan has overtaken its rivals to become the largest non–U.S. dollar stablecoin in circulation.
The token, A7A5, has reached an estimated market cap of nearly $500 million, capturing over 40% of the entire non-dollar stablecoin market.
The token’s rise comes despite being at the center of international sanctions. A7A5, which first launched earlier this year, was designed to function as a digital version of the Russian ruble, backed by fiat deposits held in Kyrgyz banks. The project has framed itself as a tool for financial independence from the dollar system, claiming on social media that it represents “a driver of global change” rather than merely a currency alternative.
But A7A5’s success story has been shadowed by controversy. Western regulators have accused the token of being a financial instrument connected to sanctioned Russian entities. Blockchain investigations have tied its operations to Grinex, an exchange reportedly created to replace Garantex, the Moscow-based platform previously sanctioned by the U.S. Treasury. Officials also identified links to Promsvyazbank (PSB) – a state-owned Russian bank – and Moldovan businessman Ilan Shor, both named in earlier sanctions lists.
These allegations, however, haven’t slowed the project’s momentum. On September 25, A7A5’s market capitalization exploded by more than $350 million in a single day, propelling it past Circle’s euro-pegged EURC to become the largest non-dollar stablecoin. This surge coincided with the project’s high-profile appearance at the Token2049 conference in Singapore, where A7A5’s executives courted industry exposure while raising eyebrows among compliance experts.
Regulatory concerns go beyond sanctions. A new report from the Centre for Information Resilience (CIR) revealed that nearly 80% of A7A5 transactions are routed through China, suggesting a growing role in facilitating trade between Chinese and Russian-linked businesses. The same report found evidence of the token’s expansion into Africa, with operational bases already established in Nigeria and Zimbabwe – markets that have shown increasing openness to non-dollar payment systems.
Despite its murky background, A7A5 has positioned itself as a symbol of financial resistance against Western dominance in digital currencies. Its rapid growth highlights how the global stablecoin market is fragmenting along geopolitical lines – where the ruble, not the dollar, may soon power an alternative digital economy beyond U.S. reach.
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Source: https://coindoo.com/russias-a7a5-stablecoin-defies-sanctions-to-top-global-charts/